CoverWallet Closes $18.5 Million Funding Round Led By Foundation Capital

CoverWallet — the all-in-one insurtech platform for business insurance — announced Thursday it has closed an $18.5 million Series B funding round led by Foundation Capital.

The startup, founded in New York City, won Best Insurtech Solution at the 2017 Benzinga Fintech Awards.

Benzinga reported last month that CoverWallet had named Paul Rosen, previously the chief sales officer at OnDeck Capital Inc ONDK, as its COO.

CoverWallet has secured more than $30 million in venture capital funding, according to Thursday’s announcement. The Series B round included existing investors Union Square Ventures, Index Ventures, CV Starr and Two Sigma Ventures.

Charles Moldow, a partner at Foundation Capital, is joining CoverWallet’s board of directors as part of the funding round.

What Is Foundation Capital?

Menlo Park, California-based Foundation Capital has invested in startups such as Uber, Netflix, Inc. NFLX, Chegg Inc CHGG and Sunrun Inc RUN.

“CoverWallet’s premise is simple and powerful: To become the destination where SMB owners can buy insurance online,” Moldow said in a statement.

“With an incredibly strong team – beginning with [CEO Inaki Berenguer] and [cofounder Rashmi Melgiri] — impressive traction and a business model that keeps improving with scale, CoverWallet is fast on its way to realizing that ambition.”

How CoverWallet Will Use The Funding

The startup said it plans to use the funding to continue building core technology; expand partnerships; and scale operations “to meet growing demand and to solidify its position as a market leader” in the $100 billion small business insurance space.

Foundation and Moldow share CoverWallet’s view that the insurance industry is inefficient and “unloved” by customers, Berenguer said in a statement.

“Today, there exists a unique opportunity to reinvent it by focusing on the CoverWallet principles of simplification and transparency, leveraging analytics and ultimately reducing friction,” he said. “We are on a mission to use technology to democratize hassle-free access to business insurance.”

Related Links:

A $1 Trillion Industry Is Under Siege From Startups

5 Insurtech Startups Changing The Game In The Bay Area

Image: CoverWallet cofounders Rashmi Melgiri, left, and Inaki Berenguer.